Nippon Steel, US Steel Sue Biden Administration Over Blocked Merger

A staff member walks through the entrance beside the Nippon Steel logo at the Kashima Plant in Kashima, Japan on Dec. 6, 2024. WASHINGTON—Nippon Steel and US Steel filed a federal lawsuit Monday challenging a Biden administration decision to block Nippon’s proposed $15 billion acquisition of the Pittsburgh company and said that the head of the Steelworkers union and a rival steelmaker worked together to scuttle the buyout.

In moving to block the transaction Friday, Biden said US companies producing a large amount of steel need to “keep leading the fight on behalf of America’s national interests,” though Japan, where Nippon is based, is a strong ally. In separate lawsuits filed Monday in the US Court of Appeals for the District of Columbia and the US District Court for the Western District of Pennsylvania, the steelmakers allege that it was a political decision made by the Biden administration that had no rational legal basis. “Nippon Steel and US Steel have engaged in good faith with all parties to underscore how the Transaction will enhance, not threaten, United States national security,” the companies said in a prepared statement Monday. Nippon Steel had promised to invest $2.7 billion in US Steel’s aging blast furnace operations in Gary, Indiana, and Pennsylvania’s Mon Valley, and had said it is best positioned to help the US compete in an industry dominated by the Chinese. US Steel has warned that, without Nippon Steel’s cash, it will shift production away from the blast furnaces to cheaper non-union electric arc furnaces and move its headquarters out of Pittsburgh. Biden on Friday halted the takeover after federal regulators deadlocked on whether to approve it—because “a strong domestically owned and operated steel industry represents an essential national security priority…. Without domestic steel production and domestic steel workers, our nation is less strong and less secure,” he said in a statemen

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Biden Blocks US Steel Acquisition by Nippon SteelPresident Biden blocked the $15 billion acquisition of US Steel by Japan's Nippon Steel, citing national security concerns.
Source: TheManilaTimes - 🏆 2. / 92 Read more »

Nippon Steel to Pursue US Steel Acquisition After Biden BlockNippon Steel Corp. is continuing its pursuit of the $14.1 billion takeover of United States Steel Corp. despite its rejection by US President Joe Biden last week. Both companies have filed lawsuits in US courts to challenge Biden's decision, arguing that it was politically motivated and violated national security review procedures. Nippon Steel maintains its commitment to the deal and is seeking a new review from the US Court of Appeals for the District of Columbia Circuit.
Source: BusinessMirror - 🏆 19. / 59 Read more »